Texas Capital Bancshares, Inc. · NASDAQ:TCBI
Texas Capital Bancshares — Q1 2005 Earnings Presentation
19 slides from Texas Capital Bancshares's earnings presentation, Apr 21, 2005
Slide 1: Texas Capital Bancshares, Inc. Earnings Release April 20, 2005
Texas Capital Bancshares, Inc. Earnings Release April 20, 2005
Slide 2: Forward-looking statements
Certain matters discussed on this call may contain forward-looking statements, which are subject to risks and uncertainties. A number of factors, many of which are beyond Texas Capital Bancshares' control, could cause actual results to differ materially from future results expressed or implied by su
Slide 3: Opening Comments
OPENING COMMENTS Financial highlights Net income for Q1-2005 of $5.3 million EPS for Q1-2005 of $0.20 Continued growth of more than 20% in loans and deposits over Q1-2004 Business remains exceptionally well-positioned for 2005 On plan and on target to meet full year net income of $26.5 million to $2
Slide 4: Performance Summary
Net income growth to $5.3 million Increase of 34% from Q1-2004 - decrease of 12% on linked-quarter basis EPS at $0.20 up 33% from Q1-2004 - decrease of 13% on linked-quarter basis Growth in core and total loans (average balances) 26% growth over Q1-2004 - increase of 5% on linked-quarter basis March
Slide 5: Margin Analysis
MARGIN ANALYSIS A number of variables during Q1-2005 affected expansion of the net interest margin and net interest income. Growth of deposits during the quarter, exceptional growth in core loans near the end of the quarter and seasonal reduction in loans held for sale reduced net interest income an
Slide 6: Q4-2004 to Q1-2005 Comparison
Q4-2004 TO Q1-2005 COMPARISON (In Thousands) The numbers below represent significant differences between Q4-2004 and Q1-2005. All are in the normal course of business, but can significantly affect quarter-to-quarter comparisons. EPS impact of the following is $0.035. Pretax Increase from Q4-2004 Res
Slide 7: Financial Review
© TEXAS CAPITAL BANCSHARES, INC. FINANCIAL REVIEW
Slide 8: Income Statement
INCOME STATEMENT In Thousands Q1-05 Q4-04 Q3-04 Q2-04 Q1-04 Net interest income $ 21,668 $ 21,460 $ 19,386 $ 17,252 $ 16,644 Provision for loan losses - 200 375 363 750 Net interest income after provision for loan losses 21,668 21,260 19,011 16,889 15,894 Non-interest income 4,179 3,738 3,463 3,116
Slide 9: Performance Drivers & Model
PERFORMANCE DRIVERS & MODEL Q1-2005 Q4-2004 Q3-2004 Q2-2004 Q1-2004 Net interest margin 3.61% 3.58% 3.38% 3.24% 3.24% Non-interest income 0.69% 0.62% 0.60% 0.58% 0.64% Net revenue 4.30% 4.20% 3.98% 3.82% 3.88% Loan Loss Provision - (0.03)% (0.07)% (0.07)% (0.15)% Non-interest expense (2.94)% (2.63)%
Slide 10: Financial Summary (Period End)
FINANCIAL SUMMARY In Thousands Period End Period End Period End Q1 2005 Q4 2004 Q1 2004 Q1/Q4 % Change YOY % Change Loans held for investment $1,676,799 $1,564,578 $1,311,511 7% 28% Loans held for sale 70,672 119,537 72,789 (41)% (3)% Total loans 1,747,471 1,684,115 1,384,300 4% 26% Securities 754,1
Slide 11: Financial Summary (Averages)
FINANCIAL SUMMARY In Thousands Averages Averages Averages Q1 2005 Q4 2004 Q1 2004 Q1/Q4 % Change YOY % Change Loans held for investment $1,590,207 $1,516,672 $1,265,840 5% 26% Loans held for sale 81,956 94,510 61,177 (13)% 34% Total loans 1,672,163 1,611,182 1,327,017 4% 26% Securities 778,622 810,8
Slide 12: Average Balances, Yields, and Rates
AVERAGE BALANCES, YIELDS, AND RATES In Thousands Q1 2005 Q1 2005 Q4 2004 Q4 2004 Q1 2004 Q1 2004 Avg. Bal. Yield / Rate Avg. Bal. Yield / Rate Avg. Bal. Yield / Rate Assets Securities $ 778,622 4.44% $ 810,850 4.31% $ 758,966 4.03% Fed funds sold & liquidity investments 30,235 2.67% 3,932 2.12% 6,88
Slide 13: Deposit and Loan Growth
DEPOSIT AND LOAN GROWTH Core Loans* Interest Bearing Deposits Demand Deposits * Excludes loans held for sale. Demand Deposit CAGR: 50% Total Deposit CAGR: 24% Core Loan CAGR: 26% 2000 2001 2002 2003 2004 Q1-2005 Core Loans 625 855 1003 1230 1565 1677 2000 2001 2002 2003 2004 Q1-2005 Demand Deposits
Slide 14: Revenue and Expense Growth
REVENUE AND EXPENSE GROWTH Operating Revenue CAGR: 33% Net Interest Income CAGR: 31% Non-interest Income CAGR: 54% Non-interest Expense CAGR: 15% Net Interest Income Non-interest Income Non-interest Expense 2000 2001 2002 2003 2004 Q1-2005 Non Interest Expense 35158 29432 35370 48430 57340 71416 200
Slide 15: Interest Sensitivity Position
56% 7% 4% 36% 14% 8% 42% 33% INTEREST SENSITIVITY POSITION 56% 7% 4% 36% 14% 8% 42% 33% Assets Liabilities Data : 1st Qtr Average Balance Sheet Asset Sensitive Differential: Approx. $574 million Assets Liabilities 0.58 0.38 0.3 0.15 0.06 0.07 0.07 0.4 Floating Rate Other Loans Securities Loans Fixed
Slide 16: Credit Quality
Credit quality improved during 2004 and remains superior Net recoveries of $17,000 in Q1-2005 NPL's decreased to 0.36% of core loans Substantial reduction in classified assets Increase in unallocated reserve Total reserve at $18.7 million are exceptionally strong as measured by coverage of NCO's and
Slide 17: Credit Quality
CREDIT QUALITY Allowance / Loans (1) 1.12% 1.20% 1.44% 1.45% 1.47% NPL to Loans (1) .36% .39% .83% .29% .75% Allowance to NPL 3.1x 3.1x 1.7x 5.0x 1.1x (1) Excludes loans held for sale. (1) Excludes loans held for sale. Net Charge-offs / Average Loans Q1-2005 2004 2003 2002 2001
Slide 18: Closing Comments
CLOSING COMMENTS Confirming guidance for 2005 Traction in market clearly reflected in results Expect continuation of growth trends with core loan growth exceeding 20% Expansion of net interest margin Growth in non-interest income Growth of RML income, net of related commissions Increase in Wealth Ma
Slide 19: Q&A
© TEXAS CAPITAL BANCSHARES, INC. Q&A
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